MONTREAL, Feb. 15, 2012 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige"
or "the Company") (TSXV: PR) announces that it has submitted a proposal
to its creditors under the Bankruptcy and Insolvency Act (Canada) ("BIA"). The proposal is subject to approval by the statutory
majority of Prestige's creditors under the BIA at a meeting scheduled
to be held on or about March 14, 2012.
Prestige also announces that it has accepted an offer from 7922825
Canada Inc. ("Netricom"), the affiliate of Thornhill Investments Inc.
that purchased the Company's assets, which would valorize the Company's
tax attributes. The offer contemplates Prestige becoming the Company's
sole shareholder for a cash consideration equivalent to $400,000, less
the professional fees incurred in order to complete the transaction,
subject to a minimum cash consideration of $100,000.
Pursuant to the proposal, Prestige's share capital will be reorganized
in such a manner as to allow Netricom to be the sole shareholder of
Prestige. Moreover, in full and final satisfaction of their claims,
creditors will be given the opportunity to share in a limited cash pool
comprised of cash on hand and proceeds from the Netricom transaction.
Provided it receives the requisite approval from its creditors, Prestige
will seek a final order from the Court approving the proposal and
authorizing the reorganization of Prestige's share capital as stated
above pursuant to section 191 of the Canada Business Corporations Act at the latest by March 30, 2012. Prestige intends to make an application
to the securities regulatory authorities to revoke its reporting issuer
status following the foregoing transactions.
This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent
upon a certain number of factors and are subject to risks and
uncertainties. Prestige does not assume any obligation to update or
revise any forward-looking statements, whether as a result of new
information or future events, except when required by the regulatory
The TSX Venture Exchange has not reviewed the contents of this press
release and accepts no responsibility for the adequacy or the accuracy
SOURCE PRESTIGE TELECOM INC.
For further information:
Prestige Telecom Inc.
Tel.: (514) 457 4488